How much cash can you keep at home? Rules changed from April 1, 2026 – 78% tax will be charged if you fail to file accounts!

New Delhi. If you keep a large amount of cash at home or are thinking of doing a big transaction in the bank, then this news is very useful for you. Recent court decisions and new rules of the Income Tax Department have changed the entire process of keeping and depositing cash. If you don’t have information, you can get caught in heavy fines and taxes.

How much cash can you keep at home?

You will be relieved to hear that there is no fixed limit for keeping cash at home. You can keep as much money at home as you want, but the most important condition is that you should have a legal source and solid evidence of that money. It will be your responsibility to prove during the investigation that the money is part of legitimate earnings or savings.

Big decision of ITAT – relief to the elderly

Income Tax Appellate Tribunal i.e. ITAT recently in an important decision accepted that cash kept in the homes of elders and senior citizens cannot always be considered illegal. The tribunal said that if the money is related to previous savings or funds withdrawn from the bank, then senior citizens should be given some relaxation in accounting.

New rules for bank transactions from April 1, 2026

The government has made major changes in the Income Tax Rules 2026 which are effective from 1 April 2026. The bank will directly inform the Income Tax Department as soon as more than Rs 10 lakh is deposited in the savings account and more than Rs 50 lakh in the current account in a year. If the total deposit or withdrawal in a year exceeds Rs 10 lakh then PAN card and strict verification will be mandatory. With this, taking Rs 2 lakh or more in cash in a day from any person is now punishable under Section 269ST.

78% tax and 200% fine if you fail to file accounts

If during investigation you find cash whose source you cannot tell, then the Income Tax Department can charge up to 78 percent tax and surcharge on that amount under Section 115BBE. Apart from this, a fine of up to 200 percent can also be imposed. Experts advise that you should always keep a record of the cash kept at home, such as bank withdrawal slip or sale deed, and check your income profile before making any big transaction.